Ethical cosmetics firm Body Shop International is planning 300 new stores after reporting a 40 per cent jump in profits.

The Littlehampton-based natural beauty retailer, which sells products such as Brazil nut body butter and lavender salt scrubs in 50 countries, unveiled the £100 million expansion plan yesterday, despite reporting a 13 per cent drop in sales in Britain in the past year.

The new stores will be built during the next three years in Britain, the United States, Eastern Europe and Japan.

Chief executive Peter Saunders said the expansion would include refurbishing existing stores to make them lighter and brighter, growing a service that demonstrates products in people's homes, updating IT systems and selling products online.

Body Shop began in 1976 as a single shop selling hand-mixed products in Brighton.

It quickly became one of the icons of the Eighties High Street but was forced into drastic action after rivals developed similar products.

The changes resulted in the company's founder, Dame Anita Roddick, 61, who lives near Slindon, stepping down from her position as co-chairman. She is now a non-executive director.

Mr Saunders took over two years ago following three profits warnings in 18 months. He has introduced changes including marketing initiatives such as in-store customer events and sampling programmes.

The company reported a £28.5 million profit for the year to February 28.

The group, which has more than 300 shops in the UK and Ireland, has blamed less discounting and tough trading conditions, particularly in London, for its poor UK performance.

Mr Saunders said the introduction of a loyalty card costing shoppers £5 in return for a ten per cent discount over a year, new product ranges and a new store format being trialled at two London shops would entice Britons back.

Friday April 30, 2004